Pre-Paid iPhone Service to be Available?

BoyGeniusReport.com has posted screenshots from AT&T's accounting system revealing new account codes for three versions of iPhone sales:

- iPhone PostPaid
- iPhone PrePaid (Pay As You Go)
- iPhone Hybrid (Pick Your Plan)

"PostPaid" is the traditional 2 year contract sign up method that most cellular customers, while PrePaid and Hybrid represent different PrePaid (no contract) plans that Cingular currently offers.

Cingular details the plans on their site:

Pay As You Go
Pay As You Go is wireless made easy. Simply pay in advance for what you need. No long-term contracts, credit checks or surprise bills - just all the benefits of wireless, with no complications.

Pick Your Plan
Get the best of wireless without long-term contracts or unexpected bills. With Pick Your Plan, you establish monthly automatic payments for service and use the balance on your account for voice minutes or other features. It's that easy.

The benefits are clear -- no long term contracts. However, subscribers of these plans must purchase phones at full price, without benefit of subsidies.

As an example, the most expensive phone available on the Prepaid phones from Cingular at present is the Motorola RAZR V3 which would cost you $199.99 without annual contract. In contrast, the same phone when purchased with a 2-year contract plan is Free (after $50 rebate). The deep discount is due to a subsidy paid by Cingular to encourage customers to sign long term contracts.

What gets interesting now is that Apple's iPhone is rumored to have tossed this business model out by not allowing the phone to be subsidized. This remains an unconfirmed belief, but this means the $499/$599 iPhone costs should be the same with or without contract. Readers have speculated that this would mean that iPhones would only be sold with contract. The unrestricted sale of iPhones without contractual obligations would more easily allow users to buy and unlock their iPhones for use on other networks.

By offering this option, AT&T/Cingular could lose revenue from individuals who might otherwise commit to a 2 year obligation, but Cingular is said to be giving Apple a portion of revenue from subscribers. Since details of the revenue sharing are unknown, it's possible that non-contract sales/revenue may fall under different terms making the pre-paid (no contract) plans (paradoxically) more profitable for Cingular.

Alternatively, these accounting codes may not mean anything and simply included by default or mistake in their accounting system.

Related Forum: iPhone

Popular Stories

iOS 26 Battery Glass Feature

iPhone 16 Pro Max 80% Charge Limit: One Year Later, Was It Worth It?

Wednesday September 24, 2025 3:58 pm PDT by
With the iPhone 15 series, I did an experiment and kept my iPhone's Charge Limit set at 80 percent for an entire year. It provided an interesting look at the impact of charge limits on battery longevity, so I decided to repeat it for the iPhone 16 line. Since September 2024, my iPhone 16 Pro Max has been limited to an 80 percent charge, with no cheating. As of today, my battery's maximum...
Home Hub Command Center with Dome Base Feature

Apple Working on All-New Operating System

Thursday September 25, 2025 1:11 pm PDT by
Apple is developing an all-new operating system codenamed "Charismatic," according to Bloomberg's Mark Gurman. Apple smart home hub concept based on rumors This is likely Apple's long-rumored "homeOS" operating system. In a report last month, Gurman said both Apple's rumored smart home hub in 2026 and tabletop robot in 2027 will run the new operating system. He said the software platform ...
AirPods Pro 3 Newsroom

Apple's 'Back to School' Offer Ends Soon, Now Applies to AirPods Pro 3

Wednesday September 24, 2025 7:20 am PDT by
Apple's annual "Back to School" promotion for students ends soon, so act fast if you want to score free AirPods with the purchase of an eligible new Mac or iPad. Until Tuesday, September 30, college students and qualifying educational staff in the U.S. can receive free AirPods 4 with Active Noise Cancellation when they purchase an eligible new Mac or iPad from Apple. This is a $179 value. ...
iPhone 17 Pro Colors

Skipped the iPhone 17 Pro? Here's What is Rumored for iPhone 18 Pro

Tuesday September 23, 2025 8:55 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are still a year away, there are already a few rumors about the devices that offer an early look ahead. Below, we have recapped some of the early iPhone 18 Pro rumors so far. This story was published previously, and it has been updated to reflect the latest rumors. Many early rumors prove to be true, but nothing is confirmed yet, and Apple's...
iOS 26

iOS 26.0.1 Update for iPhones Coming Soon — Here's What to Expect

Thursday September 25, 2025 12:40 pm PDT by
Apple is preparing to release iOS 26.0.1, according to a private account on X with a proven track record of sharing information about future iOS versions. MacRumors has also seen evidence of iOS 26.0.1 in its visitor logs in recent days. It is likely that iOS 26.0.1 will fix a camera-related bug on the new iPhone Air and iPhone 17 Pro models. In his iPhone Air review, CNN Underscored's...
iOS 26

Everything New in iOS 26.1 Beta 1

Monday September 22, 2025 12:44 pm PDT by
Apple released the first beta of iOS 26.1 today, just a week after launching iOS 26. iOS 26.1 mainly adds new languages to Apple Intelligence, but there are a few other features that are worth knowing about. New Apple Intelligence Languages Apple Intelligence is now available in Danish, Dutch, Norwegian, Portuguese (Portugal), Swedish, Turkish, Chinese (Traditional), and Vietnamese. AirPo...
Apple More Personal Siri Ad

Apple Responds to U.S. Class Action Lawsuit Over Delayed Siri Features

Friday September 26, 2025 6:57 am PDT by
In March, Apple delayed the launch of its personalized Siri features, and soon after the company was hit with multiple class action lawsuits over the situation. The plaintiffs said they never would have purchased an iPhone 16, or would have paid less, had they known Apple's marketing about the Siri features was false. In the U.S., all of the complaints were consolidated into one class...
apple tv 4k new orange

Next Apple TV Expected to Launch This Year With These New Features

Monday September 22, 2025 10:00 am PDT by
The next Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Likely Features N1 Chip With Wi-Fi 7 Last year, Bloomberg's Mark Gurman said the next Apple TV would be equipped with Apple's own combined Wi-Fi and Bluetooth chip, which is...